PennyMac Loan Services Force-Placed Insurance Class Action Settlement

A settlement has been reached in a class action lawsuit alleging PennyMac Loan Services LLC force-placed insurance policies on homeowners in such a manner that it received an unauthorized benefit or kickback from the insurance company.

If you were charged by PennyMac under a hazard, flood or wind force-placed insurance policy between Feb. 1, 2011 and Oct. 18, 2016, you may be entitled to a cash payment from the PennyMac class action settlement.

The force-placed insurance settlement resolves a class action lawsuit alleging PennyMac force-placed excessive insurance policies issued or procured by QBE Specialty Insurance Company, Praetorian Insurance Company, QBE First Insurance Agency Inc. n/k/a NGLS Insurance Services Inc., QBE Insurance Corporation, Balboa Insurance Company, Meritplan Insurance Company, Seattle Specialty Insurance Services or Southwest Business Corporation (QBE Defendants) when a borrower’s insurance policy lapsed or if the borrower failed to maintain an acceptable level of insurance coverage for the property.

It is not illegal for lenders to force-place insurance policies to ensure the property is covered by an adequate level of insurance protection. However, lenders may not impose force-placed insurance policies that are excessive or that allow the lender to receive an unauthorized benefit.

The plaintiffs claim that PennyMac placed insurance in a manner in order to receive kickbacks from the insurance companies. According to the force-placed insurance class action lawsuit, PennyMac also imposed force-placed insurance policies in such a manner that the rates and amount of coverage were excessive.

The defendants deny any wrongdoing and maintain their actions did not violate the law. However, they have agreed to settle the force-placed insurance class action lawsuit to avoid the cost and risk of trial.

The PennyMac force-placed insurance class action settlement received preliminary approval on Oct. 18, 2016.

Who’s Eligible

Class Members of the PennyMac force-placed insurance settlement include all borrowers in the United States who, between Feb. 1, 2011 and Oct. 18, 2016, were charged by PennyMac under a hazard, flood or wind lender-placed insurance policy issued or procured by any of the QBE Defendants for a residential property and who either paid PennyMac the net premium for that force-placed insurance policy or who did not pay to and still owe PennyMac the net premium for the policy.

Potential Award

Varies.

Class Members who file timely and valid Claim Forms are entitled to receive a cash payment (or a credit toward what they owe PennyMac) of an amount equal to 10.5 percent or 5.5 percent of the net premium charged between Feb. 1, 2011 and Oct. 18, 2016 for the force-placed insurance policy, depending on when they were charged.

Proof of Purchase

Claimants may be asked to provide information to verify their claims, such as the signature of a witness, a copy of a valid form of identification, a copy of a PennyMac mortgage statement, or a notary verification. Follow the directions on the Claim Form carefully to make sure you submit all required information.

Claimants must also affirm under the penalty of perjury that the information submitted in the Claim Form is true and correct.

Claim Form

CLICK HERE TO FILE A CLAIM »

Claim Form Deadline

7/13/2017

Case Name

Cooper v. PennyMac Loan Services LLC, et al., Case No. 1:16-cv-20413-JEM, in the U.S. District Court for the Southern District of Florida

Final Hearing

4/14/2017

UPDATE: The PennyMac Loan Services Force-Placed Insurance settlement was granted final approval on May 16, 2017.  Let Top Class Actions know when you receive a check in the comments section below or on our  Facebook page.

Settlement Website

www.CooperSettlementInfo.com

Claims Administrator

Cooper v. PennyMac Settlement
c/o Rust Consulting – 5301
P.O. Box 2563
Faribault, MN 55021-9563
1-866-254-8702

Class Counsel

Adam M. Moscowitz
KOZYAK TROPIN & THROCKMORTON PA

Aaron S. Podhurst
PODHURST ORSECK PA

Lance A. Harke
HARKE CLASBY & BUSHMAN LLP

Defense Counsel

Counsel for PennyMac:
Marc J. Gottlieb
AKERMAN LLP

Counsel for QBE Defendants:
Robyn C. Quattrone
BUCKLEYSANDLER LLP